Passport Potash provides update on
8/16/2010 10:40:40 AM -

Vancouver, B.C. August 16, 2010. Passport Potash Inc. (PPI:TSX.V) is pleased to announce an update on its recent activities within the Holbrook Basin located in northeastern Arizona. Steve Butrenchuk, President of Passport, reports that the company is very optimistic about the potash potential of this evaporate basin and has been conducting an evaluation and consolidation of land that is favorable to host potash in the western half of the basin. Passport Potash has recently made significant land acquisitions bringing its total land holdings to slightly in excess of 18,500 hectares or approximately 12% of the total geological target of 155,000 hectares. If the Petrified Forest National Park and the Indian Reservation Lands are excluded then the percentage of favorable land held rises to 16%.

Based on Rauzi''s estimate for the entire basin the ground presently held may have a potential of approximately 81.84 million tonnes at 6% K2O to 300,000,000 million tonnes at 20% K2O. For potash in the 12% K2O range there is the potential for 163.68 million tonnes.

Passport Potash is one of the largest landholders in the Holbrook Basin. The company continues to assess additional favorable ground in the Holbrook Basin.

Earlier exploration by Arkla Exploration Company and Duval Corporation in the 1960''s and 1970''s identified a significant potash resource. This data was reviewed by Steven L. Rauzi of the Arizona Geological Survey and published in an Open File Report in 2008. In his report, he indicates that the potash horizons ranged from 5 feet (1.5 metres) to in excess of 30 feet (9.1 metres) throughout the basin. He further estimated a geologic target for the entire Holbrook Basin of 682 million tonnes at 6% K2O to 2.5 billion tones at 20% K2O. The potash horizon in the Holbrook Basin occurs at a relatively shallow depth compared to some other of the major deposits located in North America.

Due to the relatively shallow depths to the top of the potash horizons (300-500 metres), potash deposits within the Holbrook Basin may be amenable to either conventional underground or in situ solution mining. Previous drilling has indicated that faulting and layer disruption from diapir effects common to salt deposits are minimal, thereby allowing for increased ease and decreased costs of all future exploration and development activities.

There are no current NI 43-101 mineral reserves or mineral resources on Passport Potash Inc.''s Holbrook Basin holdings. The reader is cautioned that the potential quality and grade indicated above is conceptual in nature. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the discovery of these mineral resources.

Stephen B. Butrenchuk, P. Geol., President of Passport, is the Qualified Person as defined in National Instrument 43-101, who has reviewed and approved the technical content of this news release.

On behalf of the Board of Directors


Stephen B. Butrenchuk, President